Silicon Graphics, Seagate To Cut Jobs

Scotts Valley, Calif.-based Seagate said it plans to slash its workforce by about 8,000 jobs, or 10 percent, over the next nine months through attrition, voluntary separation packages and layoffs.

The disk-drive manufacturer said it will take up to a $200 million charge in the current quarter for restructuring initiatives expected to result in $150 million in annual savings.

Meanwhile, Boston-based Silicon Graphics Inc. said it will lay off up to 3,000 employees, nearly double its previous estimate, but expects to turn a profit in its fiscal second quarter, thanks to a restructuring plan.

Steve Gomo, chief financial officer of the troubled maker of sophisticated graphics computers, said the company's workforce of about 9,000 will be cut by between 2,000 and 3,000, up from the 1,000 to 1,500 it predicted in August.